Cash-burning video distributor Roo Group is pulling up roots in New York and relocating to Dubai. The company completed its acquisition of Australian digital marketing firm Sputnik, whose managing director Gavin Champion will be president of the company, reporting to CEO Kaleil Isaza Tuzman.
Roo says moving to Dubai makes sense because 85% of its revenues come from outside North America. The move is the next step in a restructuring that began last month when the company laid off a fifth of its workforce (40 workers) and its independent directors resigned over alleged “improper payments” to senior management. In February, Roo acquired the assets of Wurld Media.
Roo Group (RGRP) shares have dropped from a peak of $4.08 in February of last year to $0.09 in Monday afternoon trading.
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